Digital tools automation, talent diversity, and improving skill sets among employees can drive up to USD 1.4 trillion in revenue and USD 282 billion in profit for companies. Digital tools automation, talent diversity, and improving skill sets among employees can drive up to USD 1.4 trillion in revenue and USD 282 billion in profit for companies, according to the latest study by IT major Infosys.
The study titled ‘Future of Work 2023’ underscores how modern workplaces will see more hybrid working and digital engagement, enabling firms to build more diverse and creative teams. The survey revealed that shifting to a flexible, diverse, and digital work model is correlated with 7.7 percentage points higher profit growth, and 6.7 percentage points higher revenue growth. According to the report, up to USD 1.4 trillion in revenue and USD 282 billion in new profit could be generated through digital tools automation, diversifying talent pools, and improving skills development among employees,” according to Infosys statement outlining the findings of the report.
Retention of employees is critical, the study said, adding that the companies that increased their staff retention between 2020 and 2022 were almost a fifth more likely to see increased revenue and profit compared with those that saw retention fall during this period. Almost two-thirds of senior executives practice remote working rather than in-office working and expect flexible or remote workspaces to grow in the future, the study revealed.
The survey was conducted by the research arm of Infosys, the Infosys Knowledge Institute (IKI), and polled 2,500 senior executives and managers involved in workplace and workforce planning for large companies with over USD 1 billion in annual revenue. The survey covered 12 industries across the US, the UK, France, Germany, Australia, and New Zealand.
The study focused on how shifting trends and pressures on the workforce, workplace, and workstyles relate to revenue growth, profitability, and employee retention. “Organizations have realized that remote work is here to stay and that there is a pressing need to diversify and upskill their employees to boost business growth,” said Rajesh Varrier, executive vice president, Head of Digital Experience and Microsoft Business at Infosys.
The report also showcased how businesses can drive growth, productivity, and profitability through the automation of digital tools and create more inclusive workplaces, Varrier said. About 65 percent of senior executives polled concurred that incorporating remote working, resulted in better staff retention. Companies that incorporated wellness initiatives, home office stipends, and reskilling programs saw an increase in staff retention. Modernization and automation of digital tools, a rise in compensation, and bring-your-own-device strategies were also impactful on retention. “Automation and modernization of digital tools are set to become the top investment priority for firms in the next two years and are expected to bring in up to USD 123 billion in profit,” the statement said.